Alright, listen up fam, let’s talk taxes for your IG/Shopify hustle! Now, I know when your just starting out and funds are low tryna make ends meet with your side gig, taxes can feel like a headache, but don’t worry, we’ll make it nice and simple
First Things First, Keep Track of All Your Earnings
Yeah, that means every penny from those fire T-shirts or handmade jewelry you’re selling. The trick is as a business you can write off your expenses to reduce how much you pay in taxes. Simple you make 1000k , but your expenses were $500 , then you will be taxed on the $500 not the 1K, got it? Cellphone, travel, meals for client meetings ( that’s right that restaurant you like to eat and your client does too, you can eat, but swerve those taxes). The IRS allows you to take deductions off your taxes for things such as healthcare and social security, which are things your employer would cover half of. Basically, the IRS is spotting you some bread if you qualify!
Self Made Artists Got Taxes Too!
When filing you want to typically submit a schedule C, which is a form used to report self-employment income on a personal return. “Self-employment income” is how we describe all the money you earned from non-W-2 sources. This could be income from your small business, freelance work, or just extra cash earned through a side hustle. It’s usually paired with a Schedule SE (Form 1040), or self-employment tax form. Schedule C is also where you report your business write-off (A.K.A expenses). That’s basically just all the money you spent on supplies for the job during the year, like software, your cell phone bill, materials and more.
Digging Deep Into Expenses
Running a business on your own requires mad resources and supplies that come out of your pocket. With tax deductions they can help reduce those financial strains. Things such as office supplies, advertising, your whip, internet, cell phone and even travel expenses. There are more technicalities when it comes to what might qualify, so make sure you do your research on what can be tax deductible or if you’re feeling fancy, you can hit up one of our Quvisor!
To Owe Or Not To Owe $$$
Now, when it comes to actually paying those taxes, stay calm. You can do this! If you’re just starting out and making under a certain amount, you might not owe much or anything at all The IRS lets you deduct up to $5000 per business start up to cover start up costs such as setting up that fancy new website and getting those licenses and permits.They can be pricey depending on what biz you got.
Make It A Little Easier On You
Consider using tax software, an accountant or finding free resources in your community or Stack 4 Life Rep to help you out. Taxes be trippin people up, especially when you’re out here grindin’ on a budget. It’s totally fine to get help from someone who knows their way around taxes, so you can focus on growing your business. It’s better to get it right than to end up emptying up your pockets for the IRS.
And that’s that! Paying taxes for that side hussle of yours biz ain’t gotta be scary. Stay organized, track your earnings and expenses, and remember, every dollar you make is a step closer to financial independence. Keep hustlin’ and keep it real!
